Definitions

Definitions

“Emoluments" are gross wages paid in the relevant tax year to PAYE and subcontractors excluding payments for work outside Northern Ireland.

“Employer” means a person who is an employer in the construction industry at any time in the levy period.  This includes Pay as you Earn employees and main or subcontractors.

“Working Directors” are directors who make executive decisions in the Board Room, and take an active part in decision making and are involved in the day to day running of the business.

“Labour Only Subcontractors” covers all payments made by you for work done under labour only agreements and includes payments to recruitment agencies and labour only subcontractors.

“Recruitment Agency” A business that works for organisations to find people for jobs when the organisations need them.

“Supply & Fit Contractors” CITB NI determine a supply and fit contractor to be a contractor who supplies materials representing 10% or more of the value of the contract.   Please note if this is the case you should not include any of the payment i.e. materials or labour, in your calculations when completing your annual Return form.

“Main Activity” is the activity which you would spend most time involved in.

“Secondary Activity” is an activity which you would be involved in frequently but would not take up the majority of your time.

“Construction Establishment” is a construction activity which is operating in Northern Ireland for a period of 27 or more weeks in the relevant tax year.

“Levy Threshold” The limit at which levy becomes payable.  Currently £80,000 of total gross emoluments.

“Option” The employer’s choice to base the levy on the current tax year rather than the previous tax year.  

"Establishment Details" To ensure that a fair and reasonable system is applied to all employers working in construction, levy will only be collected from the construction activity of an employer who carries out multiple activities both construction and non construction related.